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Jenny Abel is investing $2,500 today and will do so at the beginning of each of the next six years for a total of seven payments. If her investment can earn 12 percent, how much will she have at the end of seven years

Respuesta :

The total amount of money she would have at the end of seven years is $25,222.53.

How much money would she have at the end of 7 years?

Jenny is making payment each year for 7 years. The formula that can be used to determine the future value of her investment is:

Yearly deposit x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • r = interest rate
  • n = number of periods

[(1.12^7) - 1] / 0.12 = 10.09

10.09 x 2500 = $25,222.53

To learn more about how to determine future value, please check: https://brainly.com/question/24108530

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